A coalition of twelve states led by California filed suit to halt Paramount's acquisition of Warner Bros. Discovery, asserting the merger would concentrate market power harmfully in film distribution and cable television. The states contend the combined entity would hold roughly 30% of the blockbuster film market, with only four companies controlling 93% collectively, giving them undue leverage over theater chains and cable distributors.

Paramount responded by dismissing the states' legal theory, arguing the entertainment market remains competitive despite apparent concentration. The company highlighted low barriers to entry and cited multiple rivals—Disney, Universal, Amazon MGM, Sony, A24, and Lionsgate—as evidence that competitors could expand output if Paramount reduced its theatrical slate. Paramount additionally contended that cord-cutting and the decline of television subscriber bases have already weakened all cable channel owners' bargaining position, and that its cable networks complement rather than substitute for Warner Bros. Discovery's holdings. The two sides will present their arguments before a federal judge Friday to determine whether the merger should be temporarily blocked.